Electric vehicle (EV) prices have dropped below $31,000 in Australia for the first time. MG has slashed prices yet again, maintaining its lead against brands like BYD and GWM for the cheapest electric car in the country.
MG cut the price of its entry-level MG4 hatchback to $30,990 until the end of October, slashing $8,000 off its recommended price. The price cut comes despite strong sales, with the MG4 among the top-selling electric hatchbacks in Australia in 2024.
The move makes the MG SZ EV the second cheapest EV on the market, retailing for $34,990 after thousands of dollars were wiped off the asking price in August. That’s followed by the GWM Ora hatchback at $35,990, which also had a price cut in April.
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MG Motor Australia chief commercial officer Giles Belcher said the lower price was designed to encourage on-the-fence drivers to make the move.
“We know that people may have been considering an EV but potentially have held off due to the cost,” he said.
“[This] ensures all buyers who had been thinking of making the switch to an EV now can thanks to the lower entry point.”
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These EV models are now matching or are lower than the price of similar traditional petrol cars, including brands like the Toyota Corolla SX Hybrid ($35,260), Mazda 3 G20 Evolve ($32,020) and Hyundai i30 Elite ($30,900).
The MG4 was the fifth best-selling EV from January to June 2024 with 2,771 vehicles sold.
It came behind the Tesla Model Y in first place, followed by the Tesla Model 3, BYD Seal and BYD Atto 3.
Why are EVs dropping in price?
Several manufacturers have dropped the prices of EVS this year, including the likes of Tesla, Nissan, Polestar and Peugeot, with prices plummeting by as much as $20,000.
Car expert Paul Maric told Yahoo Finance it was down to increased competition among manufacturers.
“It’s all been spurred on by Chinese brands who have started bringing in much more affordable electric vehicles to what we’re used to,” he said.
Polestar Australia managing director Scott Maynard said the EV price war was limited to the mid- and entry-level parts of the local market.
“There’s a massive battle playing out in the sub-$70,000 bracket where so many brands, both existing and new, are clambering to dominate that segment,” he said.
More than a dozen Chinese-made EVs are expected to flood into Australia in the next 18 to 24 months and that could see prices drop even further.
China’s BYD will launch a plug-in hybrid ute in Australia next month. The BYD Shark 6 is expected to be priced at $68,000, according to CarExpert.
This would put it close to the mid-level Ford Ranger at $68,840 and the Toyota HiLux Rogue at $71,530.
It comes as the US proposes a ban on Chinese car technology, citing national security concerns.
– With AAP
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